India's Real Estate Sector Sees Record $10.4 Billion Institutional Investments in 2025
Institutional investments in India’s real estate sector crossed the $10 billion threshold for the first time in 2025, reaching an estimated $10.4 billion across 77 deals, according to a report by JLL. The record inflow marks a 17% increase over 2024’s $8.9 billion and underscores growing confidence in the sector, particularly in income-generating commercial assets and high-quality residential developments.
A notable shift during the year was the rise of domestic institutional capital, which for the first time since 2014 accounted for the majority of investments at 52%. Indian REITs and Infrastructure Investment Trusts (InvITs) played a key role, deploying around $2.5 billion, while private equity players contributed nearly 30% of domestic capital. Although foreign investors’ share fell in relative terms, absolute inflows grew by 18%, with the Americas emerging as a prominent source of overseas capital, climbing from $1.6 billion in 2024 to $2.6 billion in 2025. Equity investments dominated, comprising 83% of total capital deployed.
Office assets regained primacy as the largest recipient, attracting 58% of investments, reversing the residential-led trend of 2024. Industry experts attribute this to the preference for core assets with stable, contracted cash flows, particularly in major metropolitan hubs. Residential, warehousing, and retail followed with 17%, 15%, and 11% shares, respectively, highlighting a gradual diversification of institutional portfolios.
Geographically, Bengaluru emerged as the most favoured destination, drawing 29% of total investments, followed by the Mumbai Metropolitan Region. Tier II cities collectively captured about $175 million, reflecting early institutional interest in markets beyond traditional metropolitan centres. Emerging asset classes such as data centres, life sciences, healthcare, and student housing also attracted attention, with platform commitments exceeding $11 billion earmarked for long-term deployment, including a major data centre joint venture involving Reliance Industries, Brookfield Asset Management, and Digital Realty Trust.
Economic resilience and stable macro fundamentals are driving institutional confidence in India’s real estate, said an official involved in capital markets research. Investors are increasingly targeting assets with strong execution visibility, reliable cash flows, and long-term growth potential, supporting sustainable and inclusive urban development.
JLL predicts this trend to continue into 2026, as deeper institutional engagement, expanding REIT participation, and emerging asset-class opportunities underpin further inflows. Analysts expect capital to remain selectively deployed in high-quality office, logistics, and residential assets, signalling both market maturity and investor prudence in India’s evolving property landscape.
